1. Loan Interest. Sharon is considering the purchase of a car. After making the down payment, she will finance $15,500. Sharon is offered three maturities. On a four-year loan, Sharon will pay $371.17 per month. On a five-year loan, Sharon's monthly payments will be $306.99. On a six-year loan, they will be $264.26. Sharon rejects the four-year loan, as it is not within her budget. How much interest will Sharon pay over the life of the loan on the five-year loan? On the six-year loan? Which should she choose if she bases her decision solely on total interest paid?
2. Loan Interest. If Sharon had been able to afford the four-year loan, how much interest would she have saved compared to the five-year loan?